Study On Establishing Construction Contract Guarantee System In Construction Industry In China

There are many serious problems in Chinese construction market, such as bad quality and nonpayment in construction. These problems aren't sloved all the time. Besides the factors that the administrative department of the construction doesn't enforce the law strictly, its management exists problems, and construction firm's own problems, the more important thing is that construction market in our country lacks a set of effective interests restriction and credit security mechanism causing the lack of credit and bad performance of contract. As one of the international convention of project management in construction, construction contract guarantee system has been a set of very ripe risk management procedures and credit security system in the western developed country. Since our country has entered into WTO, construction industry, as the pillar industry in national economy, its function has been already obvious day by day. If our government establish and enforce construction contract guarantee system in Chinese construction market, it will solve old disease and persistent ailment in construction field in our country, at the same time, make our country construction enterprise be familiar with the risk management convention on international project as soon as possible and strengthen the international competitiveness of enterprises. It is the eagerly important subject to be solved to our government. This paper explains concept of construction guarantee pointing out that construction surety of our country should adopt the way of guarantee. On the basis of analyzing the international construction contract guarantee system characteristic, combining the national conditions of our country, this paper points out the defect that our country adopts deposit in construction contract guarantee at the present time, proposes the imagination on structuring and perfecting construction contract guarantee system in China, expounds the mode that our country construction contract guarantee should adopt at the present time. Aiming at bad phenomenon on employer's bad performance responsibility of contract at the present time in China, this paper proposes that our country should enforce the mandatory employer payment guarantee. It can strengthen employer's consciousness of performing contract and standardize employer's behavior through the guarantor's involvement and fully utilizing the interests restriction and credit security mechanism. So it can effectively solve the problem of employer default in construction fund. This paper points out that our government should especially emphasize that contractor should offer bid guarantee, performance guarantee, maintenance guarantee and employer should offer payment guarantee aiming at current situation of the construction market in China in the course of establishing construction contract guarantee system. It contains the main legal relation of construction contract guarantee in larger range and reflect the principle that "The persons who keep their word have rewards to repay, the persons who break their promise are punished" to confirm and perfect of above-mentioned four kinds of construction bonds. It is the foundation of establishing overall and systematic construction contract guarantee system. Finally, this paper analyses the difficulty to establish construction contract guarantee system in construction industry of our country proposing basic tactics on establishing and enforcing construction contract guarantee system at the present time.